St. George: Ridiculous fees

[NGE]

This goes back a few years but I ditched my St George credit card and refuse to have anything to do with the bank (despite being with it in its different forms since childhood). The reason: one month I had only spent $10 on my CC and accidentally paid it one day late.

Because I was one day late in paying off my $10, I was charged a fee of $25!!! After much complaint on my part as to the fairness of being charged a fee 2.5 times higher than the amount that I owed on my CC one day late, and having some revolting girl from St George try to make me feel like paying a bill one day late is a heinous crime and that a $25 fee is the least I could expect, they finally agreed to "generously" charge me a fee of only $12.50. I "eagerly" agreed and asked them to close my account at the same time as I definitely wouldn't be needing it anymore.

Greed is alive and well in Australia and big business is its biggest culprit.

NGE Member: MXD351

[Ripley]

You probably got off lightly. Most banks charge $40 - $50 penalty fees. Who's gonna stop them? The first government that proposes tight regulation of the banks will get my vote. They have become a law unto themselves since deregulation and it will only get worse with non-bank lenders unable to provide competition due to lack of funds.

[jowen]

Why are you whingeing now about something that happened years ago?

[maroma77]

I recently had similar trouble with Westpac... I was a little late with my monthly payment for which they wasted no time charging the late fee for. That late fee which they took from my credit card then tipped my card over the limit, resulting in an overlimit fee on top!! After much time and many phone calls and rude staff I finally got my $60 back, but needless to say I no longer bank with Westpac.

[Miona]

Something similar happened to me at St George. I was a day or two late paying my CC and they whacked me with a huge fee - $35 or thereabouts. Forget the fact I often prepay my credit cards and have had numerous accounts with them for years - as soon as you go one day over they charge you regardless of your good record with them. Actually St George is tolerant compared to Citibank. Never get one of their cards whatever you do. When I had a card with them people from India or somewhere would ring me up at home and at work harrassing me if I was only one or two days late. Again they don't take into consideration I was a good customer and always paid my debts in full.

[jeffinbris]

Pay your bills on time.

If you can't manage that, due to schedule or commitments, set up a Direct Debit or Bpay through electronic banking.

When you fail to pay on time, it costs the companies money. Late fees are explained in the T&C you were given when you applied for the card. When you signed the document you agreed to these fees. This isn't greed.

If someone owed you money, and gave you their word they would pay it back, wouldn't you want them to?

If you have trouble making payments and give them a call, many finance companies are more than willing to listen and make allowances. Even the big bad wolf GE Money will, with their $27 late fee (it may be higher now, i am not sure, i pay my bills on time).

Just my 2c.

[ants]

Well said jeffinbris.

Although in some situations, just $10 late for one day with a result of $25 late fee may sound ridiculous. A "due date" is a "due date". Banks and any lenders have to ensure customers/borrowers pay the bills on time. Without the late penalty fee, not many people are going to pay on time?